Law:

Section:

Section 11, read with section 260A, of the Income-tax Act, 1961 - Charitable or religious trust - Exemption of income from property held under - Assessment year 1992-93 - Assessee's claim for exemption was rejected on ground that in statutory form, specific object for which income was sought to be accumulated was not indicated - Both appellate authorities held that income was sought to be accumulated by assessee to achieve objects for which assessee-company was incorporated - It was not case of revenue that any of objects of assessee-company were not for charitable purposes - Whether as finding by Tribunal was essentially finding of fact and gave rise to no question of law, appeal was liable to be dismissed - Held, yes FACTS For the relevant previous years ending on 31-3-1992, by means of a resolution, the assessee decided to accumulate its income for a period of ten years for fulfilment of the objects for which it had been created. Notice to that effect was given by filing the requisite statutory form, giving particulars of the income sought to be accumulated and invested in the specified securities. However, while completing assessment, the Assessing Officer declined to take into consideration the amounts so accumulated on the ground that in the statutory form the specific object for which the income was sought to be accumulated was not indicated. He, accordingly, brought the said amount to tax. On appeal, the Commissioner (Appeals) held that the assessee was entitled to exemption under section 11(1)(b). The Tribunal affirmed the view taken by the Commissioner (Appeals). On appeal under section 260A : HELD It is true that specification of certain purpose or purposes is needed for accumulations of trust's income under section 11(2). At the same time, the purpose or purposes to be specified cannot be beyond the objects of the trust. Plurality of the purposes for accumulation is not precluded but it depends on the precise purpose for which the accumulation is intended. In the instant case, both the appellate authorities below had recorded a concurrent finding that the income was sought to be accumulated by the assessee to achieve the objects for which the…

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